jshepherd
Pearl Paradise
- Joined
- Jun 22, 2004
- Messages
- 6,300
Rarity is not a factor because Japan is still producing a larger volume of Akoya pearl than China. The cost of production is higher because the cost of doing business is higher. The majority of production is within 1mm of 8mm.
Anything smaller than 8mm is almost certainly going to have some Chinese production. This lowers the cost on a factory level. This is the level that determines real market cost. Because anything over 8mm cannot really be subsidized by Chinese production, this is where the prices increase more than incrementally.
So it is not an artificial price increase, it is based on real costs. At 8mm and above, you see the reality of market pricing in Japan.
Anything smaller than 8mm is almost certainly going to have some Chinese production. This lowers the cost on a factory level. This is the level that determines real market cost. Because anything over 8mm cannot really be subsidized by Chinese production, this is where the prices increase more than incrementally.
So it is not an artificial price increase, it is based on real costs. At 8mm and above, you see the reality of market pricing in Japan.